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Fair Value Measurements | 9 Months Ended
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Sep. 30, 2024
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Note 12. Fair Value Measurements A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The table below presents the valuation techniques and the nature of significant inputs generally used in determining the fair value of Level 3 Instruments.
Level 3 Instruments | Valuation Techniques and Significant Inputs
Debt and Equity Securities | Recent third-party investments or pending transactions are considered to be the best evidence for any change in fair value. When these are not available, the following valuation methodologies are used, as appropriate and available (i) Transactions in similar instruments; (ii) discounted cash flow techniques; (iii) third party appraisals; (iv) binomial option pricing models; and (v) industry multiples and public comparables.
Evidence of value in investees includes recent or pending reorganizations (for example, merger proposals, tender offers and debt restructurings) and significant changes in financial metrics, including (i) current financial performance as compared to projected performance; (ii) capitalization rates and multiples; and (iii) market yields implied by transactions of similar or related assets.
The tables below present the ranges of significant unobservable inputs used to value the Company’s Level 3 assets as of September 30, 2024 and December 31, 2023. These ranges do not represent a range of values for any single instrument. For example, the lowest discount rate for a particular redeemable convertible preferred stock investment may be appropriate for valuing that specific debt security but may not be appropriate for valuing any other debt securities in this asset class. Accordingly, the ranges of inputs presented below do not represent uncertainty in, or possible ranges of, fair value measurements of the Company’s Level 3 assets.
Level 3 Instruments |  | Amount |  |  | Valuation Techniques |  | Significant Unobservable Inputs |  | Range of Significant Unobservable Inputs
As of September 30, 2024 |  |  |  |  |  |  |  |  |
Debt Securities |  |  |  |  |  |  |  |  |
Redeemable convertible preferred stock |  | $ | 53,717 |  |  | Option pricing model |  | Discount rate |  | 9.82%-23.71%
|  |  |  |  |  |  | Volatility |  | 33.5%-65.39%
Total |  | $ | 53,717 |  |  |  |  |  |  |
Equity Securities |  |  |  |  |  |  |  |  |
Redeemable convertible preferred stock |  | $ | 15,000 |  |  | Measurement alternative |  |  |  |
Contribution to investment fund |  |  | 565 |  |  | Measurement alternative |  |  |  |
Private equity securities |  |  | 56 |  |  | Measurement alternative |  |  |  |
Convertible preferred stock |  |  | 9,166 |  |  | Option pricing model |  | Discount rate |  | 4.41%-18.26%
|  |  |  |  |  |  | Volatility |  | 40.5%-49.6%
Total |  | $ | 24,787 |  |  |  |  |  |  |
As of December 31, 2023 |  |  |  |  |  |  |  |  |
Debt Securities |  |  |  |  |  |  |  |  |
Redeemable convertible preferred stock |  | $ | 48,277 |  |  | Option pricing model |  | Discount rate |  | 9.82%-23.71%
|  |  |  |  |  |  | Volatility |  | 33.5%-65.39%
Total |  | $ | 48,277 |  |  |  |  |  |  |
Equity Securities |  |  |  |  |  |  |  |  |
Redeemable convertible preferred stock |  | $ | 15,000 |  |  | Measurement alternative |  |  |  |
Contribution to investment fund |  |  | 574 |  |  | Measurement alternative |  |  |  |
Private equity securities |  |  | 857 |  |  | Measurement alternative |  |  |  |
Convertible preferred stock |  |  | 8,152 |  |  | Option pricing model |  | Discount rate |  | 4.41%-18.26%
|  |  |  |  |  |  | Volatility |  | 40.5%-49.6%
Convertible preferred stock |  |  | 2,264 |  |  | Measurement alternative |  |  |  |
Total |  | $ | 26,847 |  |  |  |  |  |  |
As noted above, either the binomial optional pricing model or market approach were used in the determination of fair value of Level 3 assets as of September 30, 2024 and December 31, 2023. The significant unobservable inputs used in the binomial option pricing model are the discount rate or market yield used to discount the estimated future cash flows expected to be received from the underlying investment, which include both future principal and interest payments. An increase in the discount rate or market yield would result in a decrease in the fair value. Included in the consideration and selection of discount rates or market yields is risk of default, rating of the investment, call provisions and comparable company investments. The significant unobservable inputs used in the market approach are based on market comparable transactions and market multiples of publicly traded comparable companies. Increases or decreases in market comparable transactions or market multiples would result in an increase or decrease in the fair value. The below tables present a summary of changes in fair value of Level 1 and Level 3 assets, included within Debt and equity securities in the Condensed Consolidated Balance Sheets, by investment type (in thousands of USD):
|  | Nine Months Ended September 30, 2024 |
|  | Level 1 |  |  | Level 3 |  |  | Total |
|  | Equity Securities |  |  | Equity Securities |  |  | Debt Securities |  |  | Debt & Equity Securities |
Beginning balance, January 1 |  | $ | 16,109 |  |  | $ | 26,847 |  |  | $ | 48,277 |  |  | $ | 91,233 |
Business disposition |  |  | - |  |  |  | (776 | ) |  |  | 6,522 |  |  |  | 5,746 |
Net unrealized gain |  |  | 3,352 |  |  |  | 19 |  |  |  | - |  |  |  | 3,371 |
Sales and settlement |  |  | - |  |  |  | (4 | ) |  |  | - |  |  |  | (4 | )
Reclassification |  |  | (18,701 | ) |  |  | - |  |  |  | - |  |  |  | (18,701 | )
Currency translation differences |  |  | (757 | ) |  |  | (398 | ) |  |  | (2,148 | ) |  |  | (3,303 | )
Ending balance, March 31, |  |  | 3 |  |  |  | 25,688 |  |  |  | 52,651 |  |  |  | 78,342 |
Net unrealized gain |  |  | - |  |  |  | 1,852 |  |  |  | - |  |  |  | 1,852 |
Sales and settlement |  |  | - |  |  |  | (2,709 | ) |  |  | (19 | ) |  |  | (2,728 | )
Currency translation differences |  |  | - |  |  |  | (535 | ) |  |  | (1,607 | ) |  |  | (2,142 | )
Ending balance, June 30 |  |  | 3 |  |  |  | 24,296 |  |  |  | 51,025 |  |  |  | 75,324 |
Currency translation differences |  |  | — |  |  |  | 491 |  |  |  | 2,692 |  |  |  | 3,183 |
Ending balance, September 30 |  | $ | 3 |  |  | $ | 24,787 |  |  | $ | 53,717 |  |  | $ | 78,507 |
|  | Nine Months Ended September 30, 2023 |
|  | Level 1 |  |  | Level 3 |  |  | Total |
|  | Equity Securities |  |  | Equity Securities |  |  | Debt Securities |  |  | Debt & Equity Securities |
Beginning balance, January 1 |  | $ | 8,680 |  |  | $ | 31,672 |  |  | $ | 68,787 |  |  | $ | 109,139 |
Purchases |  |  | — |  |  |  | 46 |  |  |  | — |  |  |  | 46 |
Net unrealized gain |  |  | 117 |  |  |  | 128 |  |  |  | — |  |  |  | 245 |
Currency translation differences |  |  | 7 |  |  |  | (617 | ) |  |  | (1,926 | ) |  |  | (2,536 | )
Ending balance, March 31, |  |  | 8,804 |  |  |  | 31,229 |  |  |  | 66,861 |  |  |  | 106,894 |
Purchases |  |  | - |  |  |  | - |  |  |  | 675 |  |  |  | 675 |
Business disposition |  |  | - |  |  |  | (1,630 | ) |  |  | 2,323 |  |  |  | 693 |
Net unrealized gain (loss) |  |  | 858 |  |  |  | (3 | ) |  |  | - |  |  |  | 855 |
Reclassification |  |  | 19 |  |  |  | (19 | ) |  |  | - |  |  |  | - |
Currency translation differences |  |  | (786 | ) |  |  | (87 | ) |  |  | (461 | ) |  |  | (1,334 | )
Ending balance, June 30 |  |  | 8,895 |  |  |  | 29,490 |  |  |  | 69,398 |  |  |  | 107,783 |
Purchases |  |  | 1,294 |  |  |  | — |  |  |  | 384 |  |  |  | 1,678 |
Currency translation differences |  |  | (356 | ) |  |  | (291 | ) |  |  | (1,663 | ) |  |  | (2,310 | )
Ending balance, September 30 |  | $ | 9,833 |  |  | $ | 29,199 |  |  | $ | 68,119 |  |  | $ | 107,151 |
The Level 1 equity securities relate to investments in public equity securities that have readily determinable fair values. The Level 3 equity securities relate to the Company's investments in privately held companies through the purchase of convertible preferred stock, private equity securities, contribution to investment fund and redeemable convertible preferred stock. For these equity securities, the Company does not have the ability to exercise significant influence on the investee, and therefore accounts for them as equity securities under ASC Topic 321, Investments in Equity Securities. The Level 3 debt securities relate to the Company's investments in privately held companies through the purchase of redeemable convertible preferred stock that meet the definition of a debt security. For the nine months ended September 30, 2024 and 2023, th e Company did no t recognize any re alized gain or loss on its Level 3 equity or debt securities.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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